Bitcoin Price: Why BTC Price May Not Hit New ATH Before Halving?

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Can Changing Realised Cap For Coin-Ages Blast BTC To $70,000? – Crypto News

Published

1 year ago

April 4, 2024

Dripp

Bitcoin (BTC) price remains relatively unchanged in the last 24 hours, hovering at $66,384. The stability the biggest coin is experiencing hints at a potential consolidation period ahead of the next breakout.

During this time, investors are expected to focus on accumulating more BTC, considering the significantly lowered prices from last week’s high atop $71,000.

However, a 30% drop in the 24-hour trading volume, as highlighted by CoinMarketCap data suggests that interest is dimming among traders.

Santiment, a leading blockchain analytics company reckons that “Bitcoin’s drop to as low as $65.5K today has continued to drag down most of #crypto along with it.”

Overall, market caps posted a 3.61% decline while the trading volume plummeted by another 18.84% this week compared to the week before.

📉 #Bitcoin‘s drop to as low as $65.5K today has continued to drag down most of #crypto along with it. In the past 7 days, there has been a -3.61% drop in overall market caps. Trading volume is down -18.84% compared to the week prior. https://t.co/LqQQV1jZbj pic.twitter.com/YhjzO0O54V

— Santiment (@santimentfeed) April 4, 2024

If the trend continues, shorting Bitcoin could start to seem attractive and this may cause prices to drop further.

Assessing The Behaviour Of BTC Coin-Ages Younger Than 3 Months

According to a recently released report by Glassnode, Bitcoin has been changing hands from long-term holders to newer investors who currently account for approximately 44% of the network’s aggregate wealth.

Bitcoin’s commendable rally to its currently all-time high of $73,308 has seen long-term holders change tactics, preferring to sell to newer investors to meet the growing demand.

“This uptick in younger coins is a direct result of Long-Term Holders spending their coins at higher prices to satisfy the wave of inflowing demand,” Glassnode researchers wrote on X.

Bitcoin (BTC) Price Signals Incoming Uptrend

Traders still sitting on the sidelines may want to know that Bitcoin flaunts several signals that could potentially trigger a significant trend reversal.

For starters, a confluence support at $65,706 formed by the 200-day Exponential Moving Average (EMA) (the purple line on the chart) and the 0.618 Fibonacci ratio means that Bitcoin is leaning strongly toward an immediate recovery.

The Moving Average Convergence Divergence (MACD) indicator’s buy signal calls on traders to buy BTC at the current price level, hinting at a breakout towards $70,000.

Should the 20-day EMA (in blue) resistance come out of the way, Bitcoin price would quickly gain momentum. Nonetheless, it would be prudent to prepare for delays at key resistance areas such as the 50-day EMA (in red), 0.382 and 0.236 Fibonacci ratios as well as the psychological hurdle at $70,000.

On the contrary, losing the confluence support may quickly change the technical outlook, encouraging more people to sell Bitcoin to buy again at lower price points like $62,000 and $60,000 before the halving in April.